ADDICTIVE

Addictive Learning Technology is undergoing a significant pivot to an AI-enabled sales organization, aiming to overcome past scaling challenges. This new model involves hiring freshers and college students, training them with an AI-enabled process that removes the need for experienced sales closers. In November, this new organization generated ₹70 Lakhs in additional sales, achieving a remarkable 1:4 to 1:5 conversion rate from its two-call process (Pain Point Discovery and Roadmap Call). The company expects to see 'incredible accelerated numbers' by January, despite November and December being typically slow months due to high ad costs.

The company is actively pursuing several strategic initiatives to drive future growth and increase ARPU. A key focus is the US University accreditation process, with pre-application approval received and final board meetings scheduled for January and February 2026. This approval would enable the launch of an online MBA program focused on the Fourth Industrial Revolution, Tokenization, and AI Economy, significantly increasing ARPU for Indian students. Additionally, a tie-up with IIT Roorkee allows for top-up certifications, enabling the company to sell programs like a ₹65,000 course for over ₹1 Lakh.

Addictive Learning is heavily investing in automation across its operations and course delivery. This includes an AI system for matching jobs and applicants on its LawSikho Opportunity Portal, which sees 1.5 Lakh users monthly. AI is also being used to automate incoming support emails, reducing human intervention while maintaining student experience. The company is developing a new AI-driven course delivery system, expected by March, which will create personalized roadmaps, assign daily tasks, and coach students based on their goals and profiles, a feature unique in the upskilling market.

While the company missed its H1 FY26 revenue target of ₹50-60 Crores, it projects a base case of ₹50 Crores revenue and ₹8-10 Crores EBITDA for the next 6 months. Customer Acquisition Cost (CAC) is currently high at 35-37%, but management aims to reduce it by 30% to 25% or less within the next three months through the new AI sales process. Delivery cost stands at 22-23%. The company has sufficient cash reserves and does not plan a fundraiser at its current low stock price, preferring to improve cash position through internal cash flow.

The company has invested significantly in AI technology and the US University setup, classifying these development costs as Capex/Intangible assets which are amortized over 6 years. Promoters have shown confidence by buying ₹12 Lakhs and ₹10 Lakhs worth of shares respectively in the last 6 months, with plans for similar buying in the next 6 months. The company is not considering dividends or buybacks currently, prioritizing cash for growth. Management also expressed a desire to migrate to the Main Board within 16-17 months, believing their current share price (2.3x revenue) is undervalued on the SME board.